Dabur India gains after announcing decent Q1 results

Dabur India gained 1.62% to Rs 308.25 at 15:07 IST on BSE after the consolidated net profit rose 11.82% to Rs 292.80 crore on 1.77% rise in total income to Rs 1989.44 crore in Q1 June 2016 over Q1 June 2015.

The result was announced during market hours today, 27 July 2016.

Meanwhile, the S&P BSE Sensex was down 2.73 points or 0.01% at 27,973.79.

On BSE, so far 3.12 lakhs shares were traded in the counter as against average daily volume of 1.23 lakh shares in the past one quarter. The stock had hit high of Rs 310 and low of Rs 296.35 so far during the day. The stock had hit a record high of Rs 320.30 on 14 July 2016. The stock had hit a 52-week low of Rs 231.30 on 27 January 2016. The stock had underperformed the market over the past one month till 26 July 2016, falling 2.46% compared with 5.98% rise in the Sensex. The scrip had, however, outperformed the market in past one quarter, advancing 13.81% as against Sensex's 7.57% rise.

The large-cap company has equity capital of Rs 176.15 crore. Face value per share is Re 1.

Dabur India said that the business environment continued to remain challenging in Q1 June 2016 with demand further slowing down across key consumer product categories in India and geopolitical disturbances in some overseas markets.

Dabur India Chief Executive Officer Mr. Sunil Duggal said that despite challenging conditions in Q1 June 2016 such as to deal with a tough economic environment characterized by demand slowdown, intensifying competitive pressures and deteriorating geopolitical situation in select geographies like the Middle East and Africa, Dabur remained on a steady course and has reported profitable growth. The domestic FMCG business ended Q1 June 2016 with an underlying volume growth of 4.1% even in this tough environment,

The company is pursuing a prudent growth strategy and has taken steps to efficiently manage the emerging risks and challenges as well as protect turf in the face of intensifying competitive pressures. Despite a sharp fall in growth rates in most consumer products segments, Dabur continues to focus on brand-building while leveraging its strong herbal heritage and positioning as the 'Science-based Ayurveda' specialist. This, the company feels that it will enable the company to consolidate market position as also pave the way for future growth, Mr. Duggal added.

Dabur is also focusing on aggressive expansion of its manufacturing capability and will be investing Rs 500 crore within the year ending 31 March 2017 (FY 2017) to establish new production units as also to expand its existing plants in India and abroad.

Dabur India is one of the largest FMCG companies in India. The company operates in key consumer products categories like hair care, oral care, health care, skin care, home care & foods.

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